Grain Producers Australia welcomes news that Incitec Pivot Limited (IPL) will not be selling its fertilisers business to foreign interests.
The announcement by IPL yesterday comes almost 12 months after GPA raised concerns that any sale to foreign interests could present stable supply and increasing cost risks for growers.
GPA Chair Barry Large said growers relied on IPL as one of Australia’s largest fertiliser manufacturers and distributors, supplying phosphate and urea to farmers across the country.
“Keeping any production and ownership with local interests was a concern in this case as there was potential for a foreign-owned entity to prioritise overseas markets and send supply to their country of origin, rather than supporting local producers,” he said.
“These potentially reduced volumes locally would ultimately impact local prices and put unnecessary added pressure on the already tight profit margins growers have to navigate.
“We see this as a positive for all growers.”
IPL Chief Executive Officer and Managing Director Mauro Neves said the decision not to continue negotiations with PKT followed careful consideration of how to maximise value for shareholders while balancing the risks of completing the transaction in a reasonable timeframe.
The company has said it will continue to manage its two arms of manufacturing, the global premium explosives business Dyno Nobel and the fertilisers and soil health services business of Incitec Pivot Fertilisers for the agricultural industry separately. But did not rule out separating the two business structures in the future.
ENDS
Further Information:
GPA Executive Officer Communications Rachael Oxborrow – 0416 705 193
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